Florida PEO or Employee Leasing Rates are low

We are seeing some of the Lowest Rates in Years! Florida workers comp went up slightly April 1st, but word has it that they may be going down Again! If you are with a PEO or Insurance agent that provides you with a stand alone workers comp policy, stay informed with your current state rate.

I know from being in this business... that if you aren't aware of the rate changes, then you're paying too Much! Don't get me wrong, PEO or Employee Leasing is Great, but every once in a while someone gets caught with their hand in the cookie Jar...

Quick example: The small guys have it Tough...
With a service you run payroll weekly or biweekly. You're a small handyman service with 2 to 3 employees and a payroll of $600 dollars a week max. Your intentions are good and want to run every week....but now with the economy being slow, they(PEO or Leasing company)know that chances are good that you may not have work all the time...and to keep your Workers Comp Certificate Active, you must run weekly.(Huge benefit to a PEO is "Pay As You Go" workers comp)
Because they know work is slow, the chances are good you may not call in Payroll... they could increase your Workers Comp or Admin Fee to compensate.

Employee Leasing Made Simple

Employee Leasing is Great! Just like anything be aware of your state worker comp rate and the Admin Fee.

Employee leasing or PEO (Professional Employer Organization) is great because they handle the workers comp, payroll taxes and the Admin fee is the percentage they charge for doing this. Just make sure as the client you know what your state rate is. Here's an example....

State of Florida
Worker Comp code for Sales is 8742. The cost is .52 per hundred. So for every hundred dollars in wages your cost is .52 cents. Employee Leasing uses whats referred to as your Leasing Factor.

When you ask for a quote, this is the number that you will get in the form of a percentage. There are three things that make up your leasing factor.....Taxes, Worker Comp & Admin fee.

Here's a quick example for the Sales code using Florida's rate
Taxes 9.45 plus the Worker Comp of .52 and an average Admin fee of 4%. Your Leasing Factor would be 13.97%.